Question
Citrus Rental is a popular car rental agency that has a history of having too few cars available, so that its available cars are overdriven.
Citrus Rental is a popular car rental agency that has a history of having too few cars available, so that its available cars are overdriven. The mean monthly mileage over the years for Citrus cars has been about1550 miles per month. Recently, though, Citrus purchased thousands of new cars, and the company claims that the average mileage of its cars is now less than in the past. To test this, a random sample of18 recent mileages of Citrus cars was taken. The mean of these18
mileages was1423 miles per month, and the standard deviation was224 miles per month.Assume that the population of recent monthly mileages of Citrus cars is normally distributed. At the 0.05level of significance, can it be concluded that the mean recent monthly mileage,, of Citrus cars is less than1550 miles per month?Perform a one-tailed test. Then complete the parts below.
Carry your intermediate computations to three or more decimal places and round your answers as specified in the table. (If necessary, consult alist of formulas.)
(a)State the null hypothesisH0 and the alternative hypothesisH1.
H0:
H1:
(b)Determine the type of test statistic to use.
(c)Find the value of the test statistic.
(d)Find the critical value.
(e)At the0.05 level of significance, can it be concluded that the mean recent monthly mileage of Citrus cars is less than1550 miles per month? YesNo
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